The nation's military leaders did not explain why the parade, which has been in the planning stages for many months, was postponed, except to say they have "agreed to explore opportunities in 2019".
The American Legion's national commander, Denise H. Rohan, issued a statement that said the parade money would be better spent on funding the Department of Veterans Affairs.
Earlier this year, the White House budget chief said the parade would cost US taxpayers between $10 million and $30 million.
Earlier on Thursday, a USA official told the AFP news agency the planning estimate for the event had ballooned to as much as $92m (£72m).
U.S. President Donald Trump said Friday he had cancelled his military parade in Washington and would instead visit Paris on November 11 to commemorate Veterans Day, after the Defence Department said it had postponed the event to at least next year.
Officials said the parade plans had not yet been approved by Defense Secretary Jim Mattis.
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And then he capped it all off by pointing to the many great things she had set about him previously. She also released an audio recording of the conversation she had with John Kelly when he fired her.
Trump has also embraced military backdrop for several speeches and presidential visits.
A Pentagon memo in March said the parade would feature a "heavy air component" with vintage aircraft. As the invited guest of French President Emmanuel Macron, Trump watched enthusiastically from a reviewing stand as the French military showcased its tanks and fighter jets, including many US-made planes, along the famed Champs-Elysees.
The president requested the route for the parade be from the White House to Capitol Hill.
The ceremony is said to be largely inspired by Trump's front-row seat at France's Bastille Day military parade in Paris.
The White House budget office earlier estimated to Congress the parade would cost between $10 million and $30 million.
President Donald Trump's dream parade will not just be a useless show of military strength, it will also cost Americans almost $100 million.
Pentagon spokesman Jamie Davis cautioned that "planning for the Military Veterans Day Parade continues and final details are still being developed". But they noted that "Trump has said he wants to try to top the French Bastille Day parade he attended previous year in Paris, which lasted just over two hours".